South Korean top tobacco company KT&G has rejected a recent proposal from the Singapore-based activist private equity fund Flashlight Capital Partners to acquire Korea Ginseng Corporation, a KT&G affiliate.

In a move to turn down Flashlight Capital Partners' bid, KT&G issued a statement Friday and reiterated its commitment to a long-term growth strategy focused on three core businesses, including health functional foods -- the segment Korea Ginseng Corporation falls under.

KT&G also denied FCP's claim that the Korean firm values its ginseng unit at 1.2 trillion to 1.3 trillion won ($900 million to $937 million).

The company urged FCP to avoid creating future confusion for shareholders and the market by making misleading statements.

Reaffirming its commitment to maximizing shareholder value through sustained performance, KT&G noted that FCP had submitted a letter of intent on Oct. 13, offering to acquire 100 percent of KT&G's shares in KGC for some 1.9 trillion won.

Meanwhile, during its third-quarter earnings call Thursday, KT&G outlined plans to achieve a 15 percent return on equity by 2027, with a focus on increasing cash returns and expanding share buybacks. On the same day, the board approved using 150 billion won, obtained through the liquidation of non-core and low-yield assets, to repurchase and retire 1.35 million shares by the end of the year.